Rural communities present distinct development opportunities

In rural communities, economic development often extends beyond the projects traditionally associated with growth and job creation. Improved access in a broad range of areas can play an important role in supporting economic growth and quality of life:

• • Healthcare services: Clinics, pharmacies, specialized treatments
  • Reliable infrastructure and public utilities
  • Housing
  • Childcare
  • Education
  • Grocers or convenience stores

As a result, projects that may appear modest through a traditional economic development lens can deliver significant community impact.  

• • A healthcare clinic can improve access to care for residents who previously traveled long distances for treatment.  
  • Broadband infrastructure can expand access to education, telehealth, and business opportunities in remote or hard-to-reach areas.  
  • Childcare facilities can support workforce participation by giving parents more options.  
  • Housing investments can help smaller communities accommodate growth and retain residents.

And, it should go without saying, different rural communities will have their own different needs:

• • A community with a consistent population base may have educational and healthcare opportunities, but be an hour from the next hotel, hindering tourism potential...
  • While a tourist community may have abundant hospitality, but no college or hospital.

This broader definition of economic development expands the range of projects that NMTC can support and encourages investment strategies that reflect local priorities rather than standardized development models.

Unique considerations for rural projects

Rural projects often face challenges that can affect development timelines and financing strategies. These additional requirements should not be viewed as barriers; they are simply another layer of considerations that can help all stakeholders develop more realistic timelines and stronger project foundations.

Telling the story, selling the investment

Take care to not evaluate – and not let potential investors/collaborators evaluate – rural projects through the same lens used for larger metropolitan investments. Traditional economic development metrics do not always capture the full value of rural projects, so applying those standards too rigidly can cause evaluators to overlook investments that may have significant long-term value for the communities they serve. Instead, stakeholders should tailor both the story and their measures of success to capture the project's true impact and/or potential.  

Applying this to specific metrics:  

• • • Large urban developments are often measured through job creation, wage growth, or scale.  
    • A rural pharmacy, childcare center, broadband expansion, healthcare clinic, or utility project may not generate hundreds of jobs – but it can address critical gaps that affect a community's workforce participation, business attraction, population retention, and long-term economic resilience. It may not bring the same wage or number of jobs as an urban project, but it might bring jobs where there were none – jobs that mean futures. It might represent the first development an area has seen in decades.

For NMTC participants, understanding how the community defines success – and being able to communicate it well to investors and regulators – may be just as important as measuring those conventional economic outcomes. It is critical to tell the real story, not just the objective numbers.

Resourcing and specialized knowledge

On a practical/logistical level: Many rural communities operate with smaller economic development teams and fewer local resources. Stakeholders may have limited experience with NMTC's intricate financing structures, and access to specialized consultants, lenders, and professional services may be more limited than in larger markets. (A consultant for an environmental assessment, for example, may need to be hired and travel from miles away.) These factors can extend project timelines and increase the importance of early planning.  

Thus, technical assistance is often a critical component of successful rural investment. Communities may benefit from support in identifying financing options, evaluating project feasibility, and optimizing how various funding sources can work together. CDEs and CDFIs may also benefit from collaboration with peers who are more experienced in rural areas. In many cases, education and relationship-building occur long before a project reaches the financing stage.

While working through these "startup" considerations, remember: Once a community opens the door to one NMTC project – once one deal is done and all stakeholders get to know the process and requirements – the door stays open to more. A first small project can be the start of generational impact.

Why permanence matters for rural project potential

As across the NMTC landscape, permanence creates new opportunities for rural communities to pursue longer-term development strategies (Opens a new window).

Historically, uncertainty around the future of the program could make long-term planning difficult, no matter the investment setting. Rural projects in particular often require years of preparation, partnership development, and community engagement before financing is secured. When stakeholders are unsure whether a program will remain available, it becomes more challenging to invest time and resources in building a pipeline of future projects.

With permanence in place, communities can approach development more strategically, and at an enhanced scale.  

• • Local leaders can incorporate NMTC into longer-term planning efforts: identifying future projects, building local partnerships, and creating pipelines that may take years to fully develop.
  • CDEs can deepen relationships in rural markets.
  • Project sponsors can evaluate opportunities that may take years to move from concept to completion.

That stability may also encourage more communities to explore the program for the first time. NMTC's potential for addressing development needs beyond major metropolitan markets will multiply as awareness grows and successful projects demonstrate what is possible.  

Looking ahead

The permanence of the NMTC program provides an opportunity to move beyond project-by-project thinking and incorporate NMTC into broader economic development strategies. For CDEs, project sponsors, and local leaders, that means opportunity not just to build on past growth, but to extend impact into new areas – including the unique priorities of rural communities. Program stakeholders have the potential to support projects that respond to local needs, strengthen community resilience, and create lasting economic value.

Contact our team to discuss your strongest path forward.